So if you have an older Kindle, you are screwed and the value just dropped big time.

Content that is designed around the new features won't work on an older Kindle, but much of it will likely be best on a color screen anyway. This is also true of the Kindle PDFs, which are typically optimized for big screens.

Amazon already includes the original ePub in their AZW ebooks, and it looks like this might be replaced by KF8. In other words, an AZW ebook will include MOBI and KF8. From the FAQ:

Quote:

Q: Will I have to provide two versions of my titles going forward?
A: No. The upcoming updates to our Kindle Publishing Tools will take care of this for you. KindleGen 2 will convert your content so that it works on all Kindle devices and apps. You will be able to preview how your title will look on the range of Kindle devices and apps using Kindle Previewer 2.